* The views expressed in this article are solely those of the author and should not be attributed to the European Payments Council.
Developed by the ad-hoc multi-stakeholder group (MSG) on Mobile Initiated Credit Transfers (MSCT), including Instant Credit transfers ( Inst) (MSG MSCT), the draft MSCT Interoperability Implementation Guidelines (IIGs) (including Inst) were published at the end of May for a three-month public consultation. We interviewed Dag-Inge Flatraaker, the co-chair of the group, to shed some light on the newly published draft guidelines.
First, could you briefly describe what led to the ’s creation of the MSG MSCT (including Inst) and what their main objectives were?
In recent years, mobile devices have rapidly penetrated the European market, making them important enablers for the further market take-up of credit transfers as a complement to card payments for customer-to-business and person-to-person transactions. In view of the flexibility offered by mobile phones, it was clear that there would be an increased demand for the usage of mobile devices in the initiation of credit transfers, both instant and regular.
Moreover, the availability of solutions for the mobile device is crucial to support the development of the new Inst scheme. To contribute to the take-up of mobile-initiated (instant) credit transfers in Europe, the created an ad-hoc multi-stakeholder group.
In April 2018, the new MSG MSCT was formed with the goal of common integration and understanding of MSCTs across Europe. Recently, the group developed the final draft MSCT IIGs, which are complementary to the and Inst rulebooks and related implementation guidelines.
What are the key challenges that MSCT services face in Europe? Could you elaborate on the main aspects covered by the draft MSCT IIGs?
The MSCT solutions in the market today typically have limited geographical coverage. This risks creating fragmentation in Europe and vulnerability when competing with global payment players. It’s critical not to stifle this innovation and, instead, identify early on the key areas where standards and interoperability features are needed to achieve or foster a pan-European user experience for these payment solutions.
The recently published draft MSCT IIGs could serve as a reference for making certain implementation choices or achieving a cohesive payment user experience.
The document explores various MSCT use cases in order to discuss the main issues related to the initiation and authentication/authorisation of the Inst transfers in different payment contexts such as person-to-person, consumer-to-business or business-to-business. Moreover, it focuses on the technology and security used in the Customer-to-Account Servicing Payment Service Providers (ASPSP) space, since the Inst and transactions in the interbank space have already been specified in the respective rulebooks. The document also specifies various security guidelines for MSCTs. Last but not least, the MSCT IIGs identify the main interoperability issues and barriers for a pan-European reach of MSCTs.
In other words, the document aims to contribute to cost-effectiveness for society and to an enhanced, pan-European payment experience – easy person-to-person payments, faster check-out in stores, user-friendliness, better integration of value-added services with payment.
What do you expect from the public consultation on these draft IIGs?
The three-month public consultation, available via the link below, targets communities and stakeholders in the payments industry and aims to create awareness among these players about the various factors to be considered in the development of MSCT solutions.
By 24 August 2019, we expect to get as much input as possible to contribute to the creation of an environment that enables service providers, vendors and other stakeholders involved in the MSCT ecosystem to deliver secure, efficient and user-friendly MSCT solutions in an integrated market.
What is next on the MSG MSCT’s agenda?
To further analyse the MSCT challenges and evaluate the possible solutions which should result in a set of recommendations, the MSG MSCT has decided to establish a new work-stream on MSCT technical interoperability which will be reporting directly to the same group. The first meeting of the new work-stream will be hosted in Brussels on 24 June 2019.
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